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Research Paper Physical Education 


E-ISSN No : 2454-9916 | Volume : 2 | Issue : 5 | May 2016 



EVERLAST: TINY SPORTS GOODS MANUFACTURER TO 

BOXING GIANT 


Rudra Prasanna Mohapatra 

Fitness Consultant, Indian Boxing Federation 


Everlast 

Boxing and Sporting Goods Manufacturer 

Everlast is active in the design, manufacturing, licensing and marketing of box- 
ing, mixed martial arts and fitness related sporting goods equipment, apparel, 
footwear, and accessories. Based in Manhattan, Everlast's products are sold 
across more than 75 countries. Everlast is a wholly owned subsidiary of Brands 
Holdings Limited, a global company and manager of worldwide sporting goods 
and apparel brands. 

In 1 9 1 0 Jacob Golomb established Everlast as a swimsuit manufacturer. Gradu- 
ally the company ventured for other sports items like sports wears. Finally the 
company ended up with the boxing at 1917. In 1917, the young Jack Dempsey 
introduced boxing to Golomb, resulting in the brand's first boxing headgear that 
would last more than 1 5 rounds of intensive training. The chronology of the his- 
tory of Everlast is shown in Exhibit I. 


this booming market no change was observed in Everlast. Moreover, the com- 
pany faced increased pressure from foreign companies that now made copycat 
boxing equipment, which was carried by the modem sporting goods chains, as 
opposed to the smaller stores that Everlast traditionally preferred. Apparel com- 
panies, however, recognized that the Everlast label possessed international rec- 
ognition, promoted by its recognizable logo, which was seen during countless 
fights on television: on the waistbands on trunks, the cuffs on gloves, and the stan- 
chions supporting the ring tumbuckles. Everlast also received free play when it 
appeared in the advertising of other products. Despite the company's lack of 
interest in actively promoting itself, the Everlast label had achieved an incredible 
level of recognition. Virtually without trying, the company had created a brand 
with a penetration that others could only dream about. With its longtime connec- 
tion to boxing, Everlast possessed an athletic and tough image, as well as associa- 
tions to an edgy world. In others words, it had the making of becoming incredibly 
hip, a brand in a category all by itself with immense untapped value. 


Establishment of Everlast: 1910 

A 1 7-year son of a tailor, Jacob Golomb, and his wife Hannah founded Everlast in 
the Bronx in 1910 to manufacture swimsuits. The name of the company was 
derived from his guarantee that the outfits would last an entire summer. Within a 
few years he began to produce other sports equipment and opened a shop in the 
Bronx to sell his wares. An avid fight fan, Golomb also began to make boxing 
equipment, and within a few years his store became known as Boxing Headquar- 
ters. The connection of the Everlast name with champions began in 1916 when 
future heavyweight champion Jack Dempsey turned to Golomb for equipment. 
According to his biographers, Dempsey was unheralded when he arrived in New 
York in 1916, but apparently Golomb recognized the boxer's potential and 
granted him credit on training gear. Dempsey failed to launch his professional 
boxing career at this time, however, and returned to the West, where in reduced 
circumstances he picked fruit, dug ditches, and washed dishes. A new manager, 
Doc Kearns, provided Dempsey with a second chance, and it was late in 1917 
that the boxer began to make a name for himself after a pair of noteworthy fights 
in San Francisco. He returned to the New York area in 1918, knocking out the 
number one contender in Harrison, New Jersey, which resulted in a title fight 
against Jess Willard on July 4, 1919. Dempsey, forever grateful to Golomb, was 
wearing Everlast boxing gloves on the day he became the heavyweight cham- 
pion of the world. For years he freely endorsed Everlast products. It is evident 
here is that the picture of boxing is more enhanced by introducing stars like 
Dempsey to the boxing. The brand image got enhanced due to involvement of 
celebrity. 

To replace the trunks secured by a leather belt that most boxers wore, Golomb 
introduced trunks with an elastic waistband in the mid- 1920s. He continued to 
add to his line of boxing equipment, so that by the 1930s ever last's ties to the 
sport were deeply ingrained. Here Golomb tried to incorporate differentiation 
strategy for claiming Everlast as advanced globes maker. With all the great fight- 
ers wearing Everlast trunks and robes and fighting with Everlast gloves, the com- 
pany gained the reputation as "The Choice of Champions." To the general public, 
Everlast and its distinctive concave logo became virtually synonymous with box- 
ing. 

After Jacob Golomb died in the 1950s, the business was taken over by his son 
David. In 1 958, David Golomb sold a half-interest to Ben Nadorf, but it remained 
very much a private business. Nadorf was instrumental in expanding Everlast 
and opening a second manufacturing operation in Moberly, Missouri, in 1966. It 
was in Moberly that Everlast produced complete boxing rings, including ropes, 
tumbuckles, corner stools, and 1 2-inch gongs to mark the rounds of a fight. It was 
indeed an innovation to make a complete boxing ring. Normally, the ring is 
assembled before fights and the components like iron clamps, mattress, ropes 
were not branded or intentionally produced under any manufacturer. 

Long dominant in boxing, Everlast was not quick to adapt to the changing world 
of the 1 960s and 1 970s. The sport of boxing remained popular, but young boys no 
longer received a pair of boxing gloves in much the same way they would a base- 
ball glove or a basketball. It must be noted this is the era when America was boom- 
ing in boxing. Muhammad Ali got the Olympic Gold Medal in 1960. But during 


Beginning of Licensing: 1980s 

It was in 1 983 that the company first agreed to license the Everlast name. Apparel 
maker Gerson & Gerson licensed the label to market a line of novelty women's 
shorts and robes. To promote the items, Gerson employed models who shadow- 
boxed in department stores wearing skimpy tank tops and shorts, a campaign that 
failed miserably. According to a 1 990 Forbes article, 

"To many shoppers, the soft-porn approach seemed only slightly more upscale 
than mud-wrestling. ... Everlast learned an important lesson: If you're selling 
macho by association, go light on the macho. Capitalize on the scrappy image 
without offending the target market with lurid images of boxing mayhem. " 

Licensing became an increasingly more important source of income for Everlast 
as boxing equipment sales tapered off, although sales of sports equipment such 
as punching bags, wrestling mats, and pommel horses to schools and gyms 
remained steady. Relying primarily on an outside agent, Everlast by the end of 
the 1980s licensed its name to more than a dozen companies, its logo found on a 
wide range of sportswear as well as sports products such as equipment bags. 
Everlast merchandise was sold in such upscale department stores as 
Bloomingdale's, Macy's, and Nordstrom, and not found in mass merchandisers 
such as Kmart. In addition, during the 1 980s Everlast sought to take advantage of 
a fitness boom and began manufacturing some new exercise items, including 
ankle and wrist weights for women, exercise wheels, and other home items. 

Everlast became associated with its chairman and current chief executive, 
George Horowitz, in 1992 when the company asked him to launch a line of 
women's sportswear under the Everlast label. Bom in Brooklyn Horowitz actu- 
ally grew up far more interested in boxing than in women's apparel and essen- 
tially became involved in the garment industry by chance. His father introduced 
him to boxing, and, according to Horowitz, he developed a passion for the sport 
by the time he was five years old. He often attended fights with his father at Madi- 
son Square Garden, where he became familiar with the Everlast logo in the ring. 
Horowitz graduated from Long Island University during the height of the Viet- 
nam War, and instead of going on to law school he elected to take a draft exemp- 
tion by teaching social studies in the New York public school system as well as 
indulging his interest in sports by coaching basketball and track. When New York 
fell into a severe financial crisis in the mid-1970s, Horowitz, who lacked tenure, 
lost his job. To support himself and his pregnant wife, he sold insurance for a 
year, a job he was glad to leave when presented in 1976 with an opportunity to 
help start an apparel company called Golden Touch Imports with a family friend. 
It was only because of this unanticipated set of circumstances that Horowitz 
established a career in fashion. 

Horowitz started out as the vice-president of operations at Golden Touch, which 
did about $1 million in business in its first year. Fifteen years later it was a $250 
million international concern and Horowitz was part owner, although not the 
major partner. He stmck out on his own in 1990, starting up his own company to 
produce no-name active wear and sportswear. In 1992, he formally incorporated 
the business as TI Sportswear, Inc. In that same year Everlast approached him 
about licensing the Everlast label for women's sportswear. Upon receiving the 


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International Education & Research Journal [IERJ] 


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Research Paper 


E-ISSN No : 2454-9916 | Volume : 2 | Issue : 5 | May 2016 


license he changed the name of his company to Active Apparel. In the early days, 
when the company was staffed by just three people, Horowitz hired Rita Cinque 
as a consultant. She soon disbanded her own three-year-old business to join the 
new firm and became instrumental in the quick rise of Active Apparel, which 
took full advantage of the Everlast license. 

Everlast originally asked Horowitz if he was capable of doing half a million dol- 
lars in business under the Everlast label during the first year. When he was able to 
generate $6.7 million in sales for 1993 by focusing on the theme of women's 
empowerment, followed by $12 million in 1994, Horowitz solidified his rela- 
tionship with Golomb and Nadorf. Proving to be a tireless promoter of the 
Everlast women's line, he crisscrossed the country and even became involved in 
women's boxing. To take advantage of Active Apparel's success in transforming 
a traditionally male-dominated brand into a lucrative women's line of clothing, 
he soon signed a licensing agreement with Converse. In 1995, he took Active 
Apparel public, offering initial shares at $6.25 and netting $4 million. He took the 
company in a different direction in 1 996 when he obtained a license from MTV 
based on a popular dance show and launched The Grind Line collection. 
Everlast, however, remained the most lucrative part of Active Apparel's business, 
and Horowitz eagerly strengthened his ties to the boxing label. Late in 1 997, 
Active Apparel began to sell a line of bathing suits under the Everlast Woman 
brand. To focus all the company's attention on Everlast, Horowitz soon jettisoned 
Converse and MTV. He subsequently landed the Everlast menswear license as 
well, leading to even more robust business for Active Apparel. Promotional 
efforts were stepped up, leading to "Everlast Week" activities conducted at major 
retailers. The company also opened concept stores in Bloomingdale's. 

Falling out of Favor in the 1990s 

While the licensing business, spearheaded by Active Apparel, was doing well for 
Everlast in the 1990s, its traditional boxing equipment business was deteriorat- 
ing rapidly. Its shoes were of poor quality, essentially generic products made in 
Pakistan with the Everlast logo stitched on. Furthermore, the company's robes 
and trunks had not kept current with changing styles and its gloves no longer 
appealed to professional fighters. They were not considered to be "punchers' 
gloves," nor were they durable, leading some to call them "Neverlast." Other 
companies took advantage of the decline in Everlast, including new glove manu- 
facturers Grant and Reyes. Rather than answer the upstart competition by 
improving the quality of their boxing equipment, the company allegedly turned 
to unsavory means of maintaining its market dominance. In 1998, Grant's 
founder, Grant Elvis Philips, sued in federal court, accusing Everlast of conduct- 
ing a smear campaign against him. He claimed that Everlast personnel spread a 
number of nasty rumors about his operation: that it illegally smuggled products 
into the country, lacked product-liability insurance, bribed fighters to wear Grant 
Gloves, and produced gloves that were so defective they could lead to injuries, 
even death. According to Grant, Everlast was also responsible for a whispering 
campaign that suggested he was the illegitimate son of a Nevada boxing pro- 
moter and that he was known to steal Everlast gloves out of dressing rooms so 
that boxers would have to fight wearing Grant gloves. Some months later the suit 
would be settled, with Everlast paying an unspecified amount of money. 

Much of the reason that Everlast was out of step with the contemporary boxing 
scene was that its leadership was aging. After David Golomb died at the age of 74 
in 1 995, 80-year-old Nadorf bought the remaining half of the business. In the late 
1 990s, a number of large companies approached him about acquiring Everlast. 
Because he was concerned that the company might be broken up, and he wanted 
someone with a genuine passion for boxing and truly understood the Everlast 
brand, he turned to Horowitz, who was excited about the possibility of buying the 
company. In the fall of 2000, the two parties reached an agreement on a $60 mil- 
lion cash and stock deal. Active Apparel changed its name to Everlast World- 
wide, with Horowitz serving as chairman and chief executive and Nadorf hold- 
ing the title of president of the Everlast Sporting goods division. 

Horowitz was quick to initiate changes, foremost of which was to restore 
Everlast's reputation in the boxing world. He replaced 1950s-era sewing 
machines with new models and computerized the ordering and inventory sys- 
tems. He also hired consultants to help redesign Everlast equipment. Well- 
known trainer Teddy Atlas served as the connection to the fighters, trying out 
new equipment and offering suggestions to the Everlast designers. Horowitz also 
hired a noted hand surgeon, Dr. Charles Melone, to help in the design of gloves, 
making sure they conformed to the hand and offered proper protection. Atlas, in 
turn, made sure the gloves felt right from the boxer's point of view. Horowitz 
became a frequent visitor to major fights, bringing along Everlast factory work- 
ers as well. Boxers were also invited to visit the Everlast offices and factories. 
Well-known boxers Sugar Ray Leonard and Shane Mosley were hired as spokes- 
men for Everlast. Moreover, the company became heavily involved in grass roots 
efforts and gave away boxing equipment around the world. 

Horowitz brought licensing in-house, which prompted a lawsuit in December 
2000 from the company's former agent, Joan Hanson & Co., alleging breach of 
contract. To run the licensing operation he hired Hal Worsham, who had consid- 
erable experience with Converse, where he headed international licensing. 
Worsham had also been involved in marketing at BF Goodrich Dunlop, Fisher- 
Price, and Hanna-Barbera. In order to support licensees and the introduction of 
new products, Horowitz stepped up the company's marketing efforts, from 


developing new packaging to engaging in advertising for the first time in many 
years. He forged sponsorship deals with major boxing broadcasters HBO and 
ESPN so that the Everlast logo would be prominently displayed on mat rings and 
comer posts. He was also keen to take advantage of product placement opportu- 
nities. The 200 1 filing//, which was based on the career of famed boxer Muham- 
mad Ali, featured the Everlast logo throughout, and although the producers 
needed Everlast in order to maintain period accuracy and were prepared to pay 
for period Everlast equipment, Horowitz willingly donated the items. The result 
was in many ways a two-hour Everlast commercial and a rare case in which a 
movie's product placement was fully justified by the story. 

Horowitz viewed the Everlast brand as a "sleeping giant," and there was no doubt 
that the label was nothing less than an American icon. Despite a lack of enthusi- 
asm from Wall Street, which bid down the company's stock by a third over the 
course of the first 15 months, there was every reason to believe that with 
Horowitz's unbridled enthusiasm for Everlast, the label's high recognition factor, 
and untapped international licensing opportunities, the "Choice of Champions" 
was positioned to enjoy even greater success in the years to come. See Financial 
Statements in EXHIBIT II. 

Current Products Diversification 

Everlast produces a large quantity of boxing and MMA gloves for all types of 
training. Boxing-related equipment such as heavy bags, speed bags, and head- 
gear are among other products made by the brand. Everlast has granted a large 
number of licenses for a diverse range of products including men's and women's 
athletic apparel, sports-nutrition products, and athletic footwear. The company's 
products are marketed globally, and its international business is predominantly 
conducted through distributorship arrangements. 

Everlast has designed various technologies that cushion the hands and wrist 
(EverGEL), regulate body temperature (EverCool), wick away moisture 
(EverDri) and fight the growth of bacteria and microbes (EverFresh). Everlast 
products are used in amateur and professional boxing contests as well as in box- 
ing and MMA gyms and training camps. 

Everlast has been providing equipment for the Reality Television show The 
Contender and The Biggest Loser. The video game Fight Night: Round 4 fea- 
tures equipment bearing the Everlast name. Now Everlast reaching the ordi- 
nances through the media and known to be a brand associated with boxing where 
ever the name goes. 

Everlast: Recent Achievements 

Everlast Worldwide, Inc., the premier fight sports and fitness brand in the world, 
claimed victory at this year's World Mixed Martial Arts Awards when it was 
named Best MMA Technical Equipment Brand. The awards celebrate success 
and recognize achievement within the MMA industry, giving fans around the 
world the opportunity to vote for those who have made the greatest impact on the 
sport of Mixed Martial Arts. 

“It's a tremendous honor to be recognized by MMA consumers as the best techni- 
cal MMA equipment manufacturer in the world, ” said Neil Morton, CEO of 
Everlast. “As the preeminent brand in the world of fight sports, this validates our 
authenticity and 1 00 year experience of providing the best-quality equipment for 
professional and amateur fighters everywhere. ” 

Beginning with heavyweight champion Jack Dempsey to middleweight legend 
Sugar Ray Robinson, to UFC champion Randy Couture and UFC light heavy- 
weight contender Jon Jones, Everlast is the brand of choice for generations of 
world champion professional athletes. 

Everlast Industry Diversification: Cap Industry 

Everlast Worldwide, Inc., the premier fight sports and fitness brand in the world, 
today announced an exclusive partnership with New Era Cap, the leading 
headwear designer and manufacturer, to create a limited-edition Everlast N.Y. 
By No Mas, New Era collection. 

“As we celebrate our centennial, it was important to partner with an authentic 
brand like New Era those shares a similar heritage and passion,” said Adam 
Geisler, President of Everlast. “The line distinctively reflects Everlast's authentic 
brand heritage while appealing to a broader audience.” 

Everlast's premium N.Y. Collection is an ongoing collaboration with New York 
based sport and culture brand No Mas. Inspired from vintage photographs, cata- 
logs and equipment, the two N.Y. Collection's New Era styles celebrate 
Everlast's 100 year anniversary and reflect Everlast's authentic New York City 
heritage. Both styles employ New Era's iconic 59FIFTY™ silhouette. The 
“N.Y.” hat features felt applique on heavyweight Melton wool in black or heather 
gray, while the “Choice of Champions” hat features embroidery on a traditional 
baseball wool frame. Both hats feature an Everlast N.Y. canvas label stitched- 
down on the back of the hat. 

“Like Everlast, the New Era brand was founded in the early 1 900's in New York 
and was built upon authentic products that reflect quality and craftsmanship mak- 
ing the collaboration between the two brands completely organic,” said Braden 


13 


International Education & Research Journal [IERJ] 







Research Paper E-ISSN No : 2454-9916 | Volume : 2 | Issue : 5 | May 2016 


Dahl of New Era. “Everlast is one of the most recognizable sports brands in the 
world and we are honored to partner with and support them during their 1 00th 
anniversary - it is a major accomplishment.” 

"Boxing and baseball have always been our two greatest sources of inspiration, ” 
said No Mas founder Chris Isenberg. “The collaboration with New Era gave us a 
chance to combine those influences. Everlast and New Era together is as classic 
as you can get. ” 

Everlast and Celebrity Association: Brand Management 

Everlast, the global leader in fight sports and fitness, today announced the sign- 
ing of an exclusive equipment contract with fast rising MMA star Ryan Bader. 
With a record of 1 1 wins and 0 losses, the former All-American wrestler has 
become a key player in the light heavyweight division. 

Bader, who will play a feature role in direct to consumer and retail marketing ini- 
tiatives, has made his relationship with Everlast official and agreed to exclu- 
sively train with Everlast equipment. Currently riding a four fight win streak 
within the UFC, the season 8 winner of The Ultimate Fighter will face MMA leg- 
end Antonio Rogerio Nogueira on September 25 th , 20 1 0. 

“Ryan Bader is an ideal ambassador for the Everlast brand,” said Matt Cowan, 
VP of Marketing and Product for Everlast. “He is a true professional and pos- 
sesses the necessary strength and determination to one day becomes a world 
champion. We are proud to add Ryan Bader to our family of Everlast endorsers.” 

“To be part of a brand as storied as Everlast is truly a dream come true,” said 
Bader. “Growing up as a fight fan, I used to watch Mike Tyson and old highlights 
of Ali and Frazier all wearing Everlast, and aspire to be like them by practicing on 
an old Everlast heavy bag. To now be a part of the Everlast family and join those 
great champions I once looked up to, is truly a surreal feeling.” 

Ryan Bader has teamed up with training partners and fellow Arizona State alum, 
CB Dollaway and Aaron Simpson to open Power MMA and Fitness in Gilbert, 
Arizona. The brand new facility will feature Everlast equipment and is scheduled 
to open by the end of 20 1 0. 

Everlast Worldwide Inc., the global leader in fight sports and fitness, today 
announced the signing of an exclusive equipment contract with MMA standout 
Jon “Bones” Jones. Widely recognized as the best young talent in MMA today, 
the 23-year old Jones has a record of 11-1 and trains out of the renowned Jack- 
son's Mixed Martial Arts Gym in Albuquerque, NM. 

Under the agreement, Jones will exclusively train with Everlast equipment, as 
well as play a feature role in direct to consumer and retail marketing initiatives. 
Following Jones' August 1st victory over veteran Vladimir Matyushenko, the 
high-school All-American wrestler and Junior College National Wrestling Cham- 
pion, is positioned to make a run at the light heavyweight title. 

“Jon Jones is one of the most exciting athletes in MMA today,” said Matt Cowan, 
VP of Marketing and Products for Everlast. “His drive and dedication embodies 
the value upon which our brand was built and his eagerness to join the Everlast 
legacy further solidifies our position as the dominant brand in the sport.” 

"I couldn't be more excited to join the Everlast family" said Jones "Everlast has a 
rich history associated with the greatest fighters of all time and I am proud to be a 
part of that tradition, alongside icons like Randy Couture, Muhammad Ali and 
Mike Tyson." 

Everlast in T shirt Industry 

New York, NY - January 21, 2010 - Everlast Worldwide, Inc. and WBC Welter- 
weight World Champion Andre Berto have teamed up to create a limited edition 
“Team Berto” t-shirt to support Haitian relief following the January 12th earth- 
quake. 

All profits from the sale of the t-shirt benefit the American Red Cross's Haiti 
Relief and Development fund to support emergency relief and recovery efforts 
and help those affected by the earthquake. 

“Like the rest of the world, we are deeply saddened by the tragic events in Haiti 
and are committed to using our resources to help those in need,” said Neil Mor- 
ton, CEO of Everlast Worldwide. “So when news of the disaster broke, we imme- 
diately contacted Andre to see how Everlast could help.” 

In addition to giving away 100% of the profits from sales of the shirt go to the 
American Red Cross, Everlast has committed to donating $10,000 of clothes to 
the recently established Berto Dynasty Foundation!, to be distributed amongst 
those in Haiti who have survived but are without basic necessities. 


national public relations campaign that will include media relations, B2B and 
branding initiatives. Additionally, the firm will help guide communication strat- 
egy surrounding Everlast's 100 year anniversary in 2010, the company's 
increased penetration into the Mixed Martial Arts (MMA) category, and the 
introduction of new lines of innovative products and offerings. 

"Everlast is a great American brand that has become a global icon for athletic 
excellence and high quality equipment and apparel. We're extremely proud to 
help guide the company's communications strategy as it begins an exciting chap- 
ter in its storied history," said Michael W. Kempner, president and CEO of MWW 
Group. "Our team will implement a highly disciplined program focused on intro- 
ducing the brand to a new generation of consumers and athletes while helping to 
fuel the continued growth of Everlast's retail, licensing and B2B programs." 

"When searching for a PR firm, it was important for us to choose a partner who 
shared our core values of individuality, unwavering determination and commit- 
ment to greatness. In addition to being a great chemistry fit, MWW Group brings 
deep expertise in the sports and apparel sectors and a proven track record for lead- 
ing successful consumer and B2B initiatives," said Adam Geisler, president of 
Everlast. "This experience, coupled with MWW Group's understanding and pas- 
sion for our brand, makes them a natural choice to be our agency of record. " 

Everlast Worldwide to Launch New Logo and Icon as Part of Global Re- 
Branding Strategy 

Everlast to Reveal New Logo, Icon, Corporate Colors and Tagline to Coincide 
with 2008 Brand Marketing Strategy 

The re-branding will be launched in the third quarter of 2007, and it will include 
strategies within a unified marketing plan that will effectively set the goals, ambi- 
tions and future objectives to enhance Everlast's position as a premier brand. As 
part of this integrated marketing effort, Everlast will reveal a refreshed logotype, 
a new icon, corporate colors and tagline, “GREATNESS IS WITHIN,” via print, 
out-of-home and internet advertising campaigns. Everlast will further communi- 
cate this re-branding effort in 2008 on all product packaging and communication 
materials worldwide. 

The new brand assets are based on the ethos of strength, dedication, individuality 
and authenticity which collectively define Everlast's history and future. The 
refreshed logotype has been updated to meet the modern needs of the Everlast 
consumer. The new icon is clean, bold, energetic and confident. It is unique, eas- 
ily recognizable and its vanishing perspective symbolizes the idea of infinity; the 
idea of never stopping. The composite logotype and icon together will stand as a 
dynamic representation of the Everlast brand ethos. The consistent use of these 
brand assets on a global scale will help to ensure a cohesive brand message to all 
Everlast consumers. 

Seth Horowitz, Chairman and CEO of Everlast Worldwide Inc., said, “We are 
confident that our new brand strategy will elevate the Everlast name based upon 
the core values brought out by our brand ethos. In order to effectively communi- 
cate these principles we clearly understood the need for our consumer to connect 
with our brand on an emotional level and we have done extensive research to 
understand our target consumer's needs and wants. The broad goal of our strategy 
is to establish a clear vision and image for our brand on a global scale. We feel con- 
fident that our new brand guidelines accurately establish the equity and strength 
of our brand heritage and point to the future of Everlast as a premier fitness and 
active lifestyle brand.” 

Questions 

1. Which era Everlast did perform best and why? 

2. Is Rebranding the best strategy for Everlast or the Celebrity Association ? 

3. How product diversification (many sports goods) to only boxing (focused 
strategy) helped Everlast? 

4. How do you predict the future strategies for Everlast? 

5. Was America 's External environment helped Everlast or the new strategy 
of Horowitz? 

BIBLIOGRAPHY: 

Official Website of Everlast World Wide Inc. 

Website collections of NewYork Times 
http://sec.edgar-online.com 


Everlast Hires MWW Group as PR Agency of Record 

MWW Group the nation's top ten public relations firms, announced today that it 
has been retained by Everlast as the company's PR agency of record. Everlast is 
the preeminent brand in boxing and a global leader in the design, manufacturing 
and licensing of sporting goods equipment. MWW Group will spearhead a 


International Education & Research Journal [IERJ] 


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E-ISSN No : 2454-9916 | Volume : 2 | Issue : 5 | May 2016 


EXHIBIT I 

History of Chronology of Everlast 

1910: Jacob Golomb establishes Everlast as a swimsuit manufacturer. 

1917: According to legend, contact with Jack Dempsey leads to Everlast's involvement in boxing. 
1958: Ben Nadorf becomes co-owner with Golomb's son, David. 

1966: Everlast opens manufacturing facility in Moberly, Missouri. 

1983: Everlast begins licensing its name. 

1993: George Horowitz and Active Apparel Group gain Everlast license for women's sportswear. 
2000: Active Apparel acquires Everlast, forms Everlast Worldwide. 


EXHIBIT II 

Financial Statement: Everlast Worldwide Inc 

EVERLAST WORLDWIDE INC. 



CONSOLIDATED BALANCE SHEETS 




September 30, December 31, 


2001 2000 


(Unaudited) 


ASSETS 



Current assets: 



Cash and cash equivalents 

$ 5,520,666 

$ 5,452,301 

Marketable equity securities 

441,707 

414,866 

Accounts receivable - net 

4,854,608 

4,852,014 

Due from factor 

3,298,191 

3,652,353 

Inventories 

12,395,244 

8,715,934 

Prepaid expenses and other current assets 

1,421,573 

788,411 

Total current assets 

27,931,989 

23,875,879 

Restricted cash 

950,000 

Property and equipment, net 

6,249,068 

6,299,999 

Cash surrender value - life insurance 

835,312 

835,312 

Intangible assets 

33,304,371 

34,118,913 

Other assets 

952,810 

797,781 

Total assets 

$69,273,550 $66,877,884 

LIABILITIES, REDEEMABLE PARTICIPATING PREFERRED STOCK AND STOCKHOLDERS' EQUITY 

Current liabilities: 



Accounts payable 

$2,170,626 

$ 2,826,865 

Loan payable - factor 

3,350,000 

- 

Industrial bonds payable, current maturities 

- 

300,000 

Accrued expenses and other current liabilities 

2,039,185 

1,345,325 

Preferred stock dividend payable 

1,611,872 

27,324 

Total current liabilities 

9,171,683 

4,499,514 

License deposits payable 

757,723 

672,962 

Industrial bonds payable, net of maturities 

- 

3,125,000 

Long term debt, net of current maturities 

80,916 


Total liabilities 

10,010,322 

8,297,476 

Redeemable participating preferred stock 

45,000,000 

45,000,000 

Stockholders' equity: 



Common stock, par value $.002; 19,000,000 shares 



authorized; 3,172,936 issued, 2,998,936 outstanding 6,346 

6,346 

Class A common stock, par value $.01; 100,000 shares 


authorized; 100,000 shares issued and outstanding 

1,000 

1,000 

Paid-in capital 

11,642,105 

11,642,105 

Retained earnings 

3,205,936 

2,543,680 

Accumulated other comprehensive income 

135,060 

114,496 


14,990,447 14,307,627 

Less treasury stock, at cost (174,000 common shares) (727,219) (727,219) 


14,263,228 13,580,408 

Total liabilities and stockholders' equity 

$ 69,273,550 

$ 66,877,884 


15 


International Education & Research Journal [IERJ] 






Research Paper 


E-ISSN No : 2454-9916 | Volume : 2 | Issue : 5 | May 2016 


EVERLAST WORLDWIDE INC. 
CONSOLIDATED STATEMENTS OF INCOME 


Three months ended 
September 30, 


Nine months ended 
September 30, 


2001 2000 2001 2000 
(Unaudited) (Unaudited) (Unaudited) (Unaudited) 


Net sales 

$ 14,264,997 $ 9,100,476 $ 38,825,212 

$ 25,284,946 

Cost of goods sold 

9,398,676 

5,456,075 25,347,968 

15,294,462 

Gross profit 

4,866,321 

3,644,401 13,477,244 

9,990,484 

Net license revenues 

1,366,881 

3,770,064 

- 


6,233,202 3,644,401 17,247,308 9,990,484 

Operating expenses: 




Selling and shipping 

2,413,537 

1,921,529 7,713,224 

5,321,835 

General and administrative 

1,459,726 

496,176 4,115,617 

1,827,731 

Interest expense 

153,263 

219,454 384,748 

320,943 


4,026,526 2,637,159 12,213,589 7,470,509 

Income from operations 

2,206,676 

1,007,242 5,033,719 

2,519,975 

Other income (expense):: 




Amortization 

(265,032) 

(814,542) 

- 

Investment income 

19,175 

209,081 

"" 


(245,857) 

(605,461) 


Income before provision for income taxes 1,960,819 1,007,242 4,428,258 2,519,975 

Provision for income taxes 

832,677 

435,325 2,181,453 

1,085,798 

Net income 

$ 1,128,142 

$ 571,917 $ 2,246,805 

$ 1,434,177 

Redeemable preferred stock dividend 776,693 -- 1,584,549 

- 

Net income available to common shareholders $ 

351,449 $ 571,917 $ 

662,256 $ 1,434,177 

Basic earnings per share 

$.11 

$.22 $.21 

$.55 

Diluted earnings per share 

$.06 

$.21 $.12 

$.54 


International Education & Research Journal [IERJ] 


16 






Research Paper 


E-ISSN No : 2454-9916 | Volume : 2 | Issue : 5 | May 2016 


EVERLAST WORLDWIDE INC. 

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY 
NINE MONTHS ENDED SEPTEMBER 30, 2001 and 2000 

Class A 

Common Stock Common Stock 

Total 

compre- 

hensive 

income Shares Amount Shares Amount Paid in capital 


Balance, December 31, 1999 


2,492,581 $ 5,333 100,000 $ 1,000 $ 6,136,341 


Comprehensive income: 

Net income - nine months 

ended September 30, 2000 $ 1,434,177 


Balance, September 30, 2000 


2,492,581 $ 5,333 100,000 $ 1,000 $ 6,136,341 


Balance, December 3 1 , 2000 

2,998,936 

$ 6,346 

100,000 $ 

1,000 $ 11,642,105 

Comprehensive income: 
Net income - nine months 
ended September 30, 2001 
Unrealized holding gain 

$ 2,246,805 
20,564 20,564 

20,564 

- 

2,246,805 

Comprehensive income 

$ 2,267,369 




Redeemable preferred stock 
dividend 





Balance, September 30, 2001 

2,998,936 

$ 6,346 

100,000 $ 

1,000 $ 11,642,105 


Treasury stock 

Accumulated 

other 

Retained comprehensive 


earnings 

income 

Shares 

Amount 

Total 

Balance, December 31, 1999 

$ 1,145,273 


174,000 $ 

(727,219) $ 6,560,728 

Comprehensive income: 

Net income - nine months 
ended September 30, 2000 

1,434,177 



1,434,177 

Balance, September 30, 2000 

$ 2,579,450 

$ 0 

174,000 $ 

(727,219) $ 7,994,905 

Balance, December 31, 2000 

$ 2,543,680 

$ 114,496 

174,000 

$ (727,219) $ 13,580,408 

Comprehensive income: 
Net income - nine months 
ended September 30, 2001 
Unrealized holding gain 

2,246,805 

20,564 


2,246,805 

20,564 

Comprehensive income 





Redeemable preferred stock 
dividend (1,584,549) 


(1,584,549) 

Balance, September 30, 2001 

$ 3,205,936 

$ 135,060 

174,000 

$ (727,219) $ 14,263,228 


17 


International Education & Research Journal [IERJ] 






Research Paper 


E-ISSN No : 2454-9916 | Volume : 2 | Issue : 5 | May 2016 


EVERLAST WORLDWIDE INC. 

CONSOLIDATED STATEMENTS OF CASH FLOWS 



Nine months ended 
September 30, 


2001 2000 

Cash flows from operating activities: 

(Unaudited) (Unaudited) 

Net income 

$2,246,805 $ 1,434,177 

Adjustments to reconcile net income to net 
cash provided (used) by operating activities: 
Depreciation 
Amortization 

Changes in assets (increase) decrease: 

376,509 121,032 

875,533 

Accounts receivable 
Due from factor 
Inventories 

Prepaid expenses and other current assets 
Security deposits and other assets 
Changes in liabilities increase (decrease): 
Accounts payable, accrued expenses 

(2,594) 

354,162 (1,350,593) 

(3,679,310) (241,377) 

(639,439) (26,241) 

(216,020) (244,554) 

and other current liabilities 
License deposits payable 

(361) 586,727 

84,761 


Net cash provided (used) by operating activities (599,954) 279,171 


Cash flows from by investing activities: 
Restricted cash 
Notes receivable, officer 
Acquisition of property and equipment 

950,000 

7,200 

(203,681) (180,859) 


Net cash provided (used) by investing activities: 746,319 (173,659) 


Cash flows from financing activities: 
Repayment of long term debt 
Proceeds from loan payable factor 
Repayment of industrial bond 

(3,000) 

3,350,000 

(3,425,000) 


Net cash provided (used) in financing activities (78,000) 


Net increase in cash and cash equivalents 
Cash and cash equivalents, beginning of period 

68,365 105,512 

5,452,301 239,096 

Cash and cash equivalents, end of period 

$ 5,520,666 $ 344,608 


Supplemental disclosures of cash flow information: 

Cash paid during the period for: 

Interest $ 384,748 $ 320,943 

Income taxes 1,974,589 446,005 

Supplemental disclosures of non-cash, investing and financing activities: 

Acquisition of property and equipment financed by capital lease $ 121,898 $ 


Source: http://sec.edgar-online.com/everlast-worldwide-inc/10qsb-quarterly-report-of-fmancial-condition/2001/ll/07/section3.aspx 


International Education & Research Journal [IERJ]